30,000 + Rs. If TDS for the period of 20th of March 2020 to 29th of June 2020 is paid after 30th June 2020, is still 0.75% rate will be applicable for said period or need to pay flat at 1% or 1.5%? Advisory: Information relates to the law prevailing in the year of publication/ as indicated .Viewers are advised to ascertain the correct position/prevailing law before relying upon any document. ... CBDT reduce the TDS rate for fy 2020-21 & TCS rate for fy 2020-21 by 25% for the non-salaried defined payments made to residents for the period of 14th May, 2020 to March 31st, 2021. Claim against deposit can be made at end of tenancy. Ans. The government has lowered the TDS and TCS rates by 25% on non-salaried payments effective from May 14, 2020, till March 31, 2021. The period of 20 th March to 31 st March will be calculated as one month, 1 st April to 30 th April will be another month & from 1 st May to 5 th May will be treated as another one month. The government has not extended the due date for depositing TDS however, the interest rate has been reduced to 9%. Period of delay means period between due date and date on which tax is paid. So for March 2020 TDS , 1.5% interest for March and 0.75% interest for April, may and June - if we are going to pay on or before 29 June 2020. It will calculate interest for 2 months. My relative had to pay TDS on sale of property. Great article.. Interest already paid. Ans. I learned a lot abt tds. There is no change in the due date of payment of TDS for the month of March, 2020. will it be 1.5% or 0.75% p.m ???? Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. 5. 3. What is TDS, How it works, TAN, Calculation- Practical Guide with Examples, TaxAdda Private Limited Warm Regards & Best Wishes, Since the due date for filing TDS returns is extended to 30/06/2020 – will Sec 234E applicable from 15/05/2020- I did not understand your response to this question . If the interest paid on deposit exceeds Rs. Interest under Section 234B is 1% per month or part of the month for default in … The payout date remains constant irrespective of date of deposit. Income Tax Calculator: Easily calculate your taxes online for Assessment Year 2021 - 22, FY 2020 - 21, FY 2019 - 20 & FY 2018 - 19 with Goodreturns Income Tax Calculator. 40,000. Is late fees of Rs. with new Ordinance, how many months interest payment is applicable. Date on which TDS is actually deposited to the Government. Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. So my query is whether interest will be applyed if we pay n file 26QB on 31st July 2020. Since deducted on 31-03-20 then applicable interest for 2 months i.e. Therefore, TDS on the amount paid or credited during the period from 14 th May, 2020 to 31 st March, 2021 shall be deducted at the reduced rates specified in the table in para 1 above. As per intimation from TDS CPC interest for the month March 2020 (date of payment is 3170372020) is charged @ 18%. 7. As such in this case, the interest payable is for three months. Here is a look at the reduced rates of TDS and TCS on various non-salaried payments. Will it be 1.5% p.m. or 0.75% p.m.? Illustration: Calculation of interest and late fees for delayed filing of return for the month of March, 2020 (due date of filing being 20.04.2020) may be illustrated as per the below table: Return Turnover Preceeding FY As per section 201(1A), interest for delay in payment of TDS should be paid before filing the TDS return. However, the TDS system is developed in such a way that it will calculate it as two months. Thus, it becomes a tedious and labour-extensive task for businesses. But NRIs have to pay 30% TDS on interest received on NRO accounts. The due date to Deposit TDS for the month of March is 30th April. TDS is to be paid by 7th of the following month. Considering the pandemic and resultant lockdown affecting all sectors of the economy, the Government of India has reduced the rates of Tax Deducted at Source and Tax Collected at Source by 25 per cent on several transactions till March 2021. ... CBDT reduce the TDS rate for fy 2020-21 & TCS rate for fy 2020-21 by 25% for the non-salaried defined payments made to residents for the period of 14th May, 2020 to March 31st, 2021. The normal due date to pay the liability of TDS in the month of March is April, 30, 2020 which falls between March 20 to June 29. Calculate interest on late payment, late deduction, & Filing of TDS using this TDS Interest Calculator: In FY 2019-20 (AY 2020-21) the same has been increased to Rs. What is the solution for this. Acknowledgement in Form 26B will be generated for refund request placed. Therefore, they are similar to TDS provisions during COVID-19. That means you have delayed remittance by 2 months i.e. A payment of Rs 10000 under section 194J can be used to adjust TDS paid under section 194C. This benefit is available only if such TDS is remitted to the credit of government on or before 30.06.2020. Ideally interest should be charged for one month. Read More » Want to talk to us. For instance, if TDS is paid for the FY 2019-20 and the challan remains unconsumed. When TDS Is Deducted On Savings Bank Interest . The Government has not stated any separate process for TCS. Not us so tds interest should be calculated from may. As such in this case, the interest payable is for three months. TDS on savings bank interest limit. If the interest pain on deposit crosses threshold limit, TDS on interest paid on deposits will be applicable on the entire amount of interest and not on the exceeded amount alone. Starting from May 14, 2020 till March 31, 2021, for any non-salaried income which is subject to TDS, tax will now be deducted at the new lower rates for FY 2020-21. Excellent FAQ. The present articles on all aspects are being represented nicely.Even layman can able to understand the concept of article and understand it and can well be implemented. Basic provisions relating to due date of payment of TCS to the credit of Government Why NBFC Registration is Essential in Indian Financial Market? Where there is any short payment of TDS, such amount of short payment will attract interest @0.75% per month or part of the month instead of 1.5% per month or part of the month. For instance, under section 194I the TDS can be deducted as per the rent paid for previous months. The due date to file TDS return for the last quarter of the FY 2019 – 2020, that is January 2020 – March 2020 is May 31, 2020. 10,000 u/s 80TTA. Ans. Non-resident Individuals The TDS interest rates for non … What is the interest rate and for how many months I need to pay? The due date for payment in case of TDS on sale of immovable property under section 194IA is 30 days from the end of the month including the month of March. FY 2020-21 : Calculation of TDS on payment of Salary and Wages. Decoding Direct Tax Vivad se Vishwas Bill, 2020, Section 35ABB – Deduction towards expenditure incurred for obtaining a licence for operating telecommunication services, Section 14A disallowance not sustainable if AO fails to records satisfaction about correctness of claim of assessee, No income tax on receipt of reimbursement of software license fees from Indian subsidiary, SC: HC can entertain writ against Sec 16(2) Order of Arbitrator only in exceptional cases, Gujarat HC grants regular bail to assessee arrested for offences punishable under Section 132(1)(a) of CGST Act, Join Detailed Online Certification Courses on GST. Last updated at July 31, 2020 by Teachoo We know that Due date for TDS is 7th of next month However for March,TDS Due date is 30 April If deposited late,we have to pay interest @ 1.5% Any one received intimation like this. Tax Deducted at Source Compliances for the month of March-2020 during COVID-19. If the interest pain on deposit crosses threshold limit, TDS on interest paid on deposits will be applicable on the entire amount of interest and not on the exceeded amount alone. TDS on salary under section 192 is to be deducted and deposited by 30th April, 2020. Interest Payable under Section 234 B: Calculation of Interest Payable u/s 234 C; Advance Tax Payable upto 15th June 2018 (15% of Total Tax Liability) Shortfall in Advance Tax payment: Interest Payable u/s 234 C on shortfall in tax payment upto 15th June of the Financial Year (No interest payable if tax paid is 12% or more of Total Tax Liability) Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), TDS Compliances for the month of March-2020 during COVID-19. Where there is an excess payment of TDS the same will be carried forward and can be utilised for future payment of TDS. Latest TDS Rates FY 2020-21 (Assessment Year 2021-22). The gov.has not clarified any thing when lock down is there no staff is available how one can calculate all things and gov is not answering any thing lockdown was imposed by gov. Please clarify asap CA's - need your help This is based on the explanation given in the tax ordinance, which is subject to clarification. Late payment will attract reduced interest @ 0.75% per month or part of the month .Further, due date for filing of TCS returns in Form 27EQ for Q4-2020 has been extended to 30th June, 2020 from 15th May, 2020. 50,00,000, surcharge is applicable as per rules. Here’s Why You Must Make SIP Investment Your New Year Resolution, Posting of staff at Customs areas & collection of Cost Recovery Charges, Reg. payment beyond 30th April,2020 (i.e. The only way to avoid paying interest under Section 234C is to pay advance tax on time as per the scheduled dates provided by the Income Tax Department. Filing of TDS statement with payment of interest Every deductor has to furnish quarterly statement in respect of tax deducted by him i.e., TDS return. If I want to adjust the TDS liability of July 19 gainst challan paid in March 20, what will be the rate of interest? This is policy decision and has to be taken care at ministry level. -Salary expense and TDS liability booked in books on 31st March 2020 So there is no question of penalty. Non-residents : TDS Calculators FY 2020-21 TDS (Tax Deduction at Source) Calculators for. For delayed deposit of TDS, interest has been reduced to 9 % from 18% for those where the TDS is due from 20.03.2020 to 29.06.2020. In order to submit a comment to this post, please write this code along with your comment: 14f4bb27dfa9900310af95ec3524a38d. As per intimation from TDS CPC interest for the month March 2020 (date of payment is 3170372020) is charged @ 18%. This how CPC is calculated the interest, if TDS will not deposit for the month of march 20 up to 30th june, what is interest rate will be deposited after 30th june onward e.i 4 month interest 0.75% The reduced TDS and TCS rate will be for specific payments such as payment for a contract, professional fees, interest, rent etc. In case TDS is not yet deducted, select date on which you are expecting to deduct TDS. The actual due date for filing TDS return for Q4-2020 is 30th May,2020. So for March 2020 TDS , 1.5% interest for March and 0.75% interest for April, may and June - if we are going to pay on or before 29 June 2020. This is the TDS interest calculator which will help you in calculating interest on late deduction, late payment and late filing. How to ascertain liability in absence of availability of books? Legal action to recover is possible during tenancy. Please tell us if the TDS Deduction on 31-03-2020 and we deposited at 18-05-20 then the interest charged for 2 or 3 months please explain me. Check the TDS Challan to find out the actual date of deposit, Check GST Return Status of any GSTIN in Proper Format, GST Payment and Input Tax Credit Calculator, TDS Return – Due Date & Penalty Calculator, Depreciation Calculator As Per Income Tax Act, Depreciation Calculator – Companies Act 2013, HRA Calculator – Monthly & Yearly Calculations, Average Monthly/Quarterly Balance Calculator, Amazon, Flipkart, other Online Platforms – Profit & GST Calculator, Practice Management Software for CA/Tax Professionals, GST Return Status Bulk Checker for CA/Businesses, TDS on sale of immovable property under section 194IA. There’s no TDS on a savings account but you have to show your savings account interest as income in your ITR and you can get a deduction up to Rs. 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